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mlmpetert · 02-03-2012, 07:03 PM

Good read about how screwed up the current code is:

At 102%, His Tax Rate Takes the Cake - Yahoo! Finance

Also a very short but good read i meant to post a while ago.

Hinkle: Should we knock down Romney's fence? | Richmond Times-Dispatch

Honestly the argument that Romney pays less in taxes is flawed and comes from ignorance to some extent. The money he gave to charity is no longer his money and taxes should never be paid on funds that go to nonprofits. But the people in his defense who try and add back the total amount he gave away are also wrong. Just the amount of taxes he would have otherwise paid on the money he gave away should be added back.

But most importantly the amount he paid out of pocket is low, only because cap gains appear low since the money is already taxed at corporate income rates. The value of the stock is reflective of the value of the company. If corporate taxes went away then the values of stock would suddenly become worth 35% more. In the meantime people have to pay that 35% (in the form of lost earnings) before paying the 15% on any gains they MIGHT get when the stock is sold IF held long term. So Romney has really payed 15% in addition to the 35%all ready payed. Obviously you have companies like GE that don’t pay taxes or gas companies that get subsidized to some extent, but that is at no fault of Mr. Romney.

Ive gone back and forth with tax treatment of capital gains and the more i think about it the more i think its unfair for them to be taxed as high as regular income. I think the only way to make things the most fair (equal, not social justice “fair”) is to have something that’s extremely simple so people can understand it, make everyone pay a little something and of course make evil rich people pay a bit more too:

- Allow income deductions for all things tax related except federal and state sales taxes. So just things like property taxes and state or city income tax
- Allow dollar for dollar deductions for charities, however, tighten up the definition of charities (caps on director’s income, what/who they benefit, and strict rules on political partisanship)
- No joint, single, head of household or married filling separate statuses. Everyone gets taxed the same on the amounts they make over 20k or so. My girlfriend is a teacher and we ran into 2 of her old students from a low income high school the other day. They were clearly in a relationship, she’s have twins, he is the dad, and there were no plans to get married. You either have to be rich, religious or retarded to get married with kids on the way. The taxman doesn’t pitty anyone, except for single moms. If everyone is looked at as an individual then people will be able to get married without losing benefits.
- Allow individual personal and depedent decutions the same as they are now

Simple tax rates:

- If you make less then 20k or so - something very low (1-2%) partly just for equable purposes
- Personal income, federal sales tax, and evil capital gains– all equal (kind of like 999)
- Corporate income – also the same as the 3 above but allow C corps to reduce their income by allowing them to deduct distributions to shareholders (who are then taxed just like now). Don’t worry guys like Mr. Romney will still get double taxed, just not as doubled taxed. The public may think that Romney is only being taxed the same amount as them but in reality he will be taxed more. People may not understand it but I think most will feel like that he is at a minimum being taxed the same as them

The only reason why taxes are so unfair is because theyre so complex and inefficient. Taxes need to be simple and transparent before they will be considered fair.

02-03-2012, 07:03 PM	#59
mlmpetert Playmaker Join Date: Nov 2006 Location: Richmond Posts: 3,261	Re: Whats Fair When it Comes to Taxes? Good read about how screwed up the current code is: At 102%, His Tax Rate Takes the Cake - Yahoo! Finance Also a very short but good read i meant to post a while ago. Hinkle: Should we knock down Romney's fence? \| Richmond Times-Dispatch Honestly the argument that Romney pays less in taxes is flawed and comes from ignorance to some extent. The money he gave to charity is no longer his money and taxes should never be paid on funds that go to nonprofits. But the people in his defense who try and add back the total amount he gave away are also wrong. Just the amount of taxes he would have otherwise paid on the money he gave away should be added back. But most importantly the amount he paid out of pocket is low, only because cap gains appear low since the money is already taxed at corporate income rates. The value of the stock is reflective of the value of the company. If corporate taxes went away then the values of stock would suddenly become worth 35% more. In the meantime people have to pay that 35% (in the form of lost earnings) before paying the 15% on any gains they MIGHT get when the stock is sold IF held long term. So Romney has really payed 15% in addition to the 35%all ready payed. Obviously you have companies like GE that don’t pay taxes or gas companies that get subsidized to some extent, but that is at no fault of Mr. Romney. Ive gone back and forth with tax treatment of capital gains and the more i think about it the more i think its unfair for them to be taxed as high as regular income. I think the only way to make things the most fair (equal, not social justice “fair”) is to have something that’s extremely simple so people can understand it, make everyone pay a little something and of course make evil rich people pay a bit more too: - Allow income deductions for all things tax related except federal and state sales taxes. So just things like property taxes and state or city income tax - Allow dollar for dollar deductions for charities, however, tighten up the definition of charities (caps on director’s income, what/who they benefit, and strict rules on political partisanship) - No joint, single, head of household or married filling separate statuses. Everyone gets taxed the same on the amounts they make over 20k or so. My girlfriend is a teacher and we ran into 2 of her old students from a low income high school the other day. They were clearly in a relationship, she’s have twins, he is the dad, and there were no plans to get married. You either have to be rich, religious or retarded to get married with kids on the way. The taxman doesn’t pitty anyone, except for single moms. If everyone is looked at as an individual then people will be able to get married without losing benefits. - Allow individual personal and depedent decutions the same as they are now Simple tax rates: - If you make less then 20k or so - something very low (1-2%) partly just for equable purposes - Personal income, federal sales tax, and evil capital gains– all equal (kind of like 999) - Corporate income – also the same as the 3 above but allow C corps to reduce their income by allowing them to deduct distributions to shareholders (who are then taxed just like now). Don’t worry guys like Mr. Romney will still get double taxed, just not as doubled taxed. The public may think that Romney is only being taxed the same amount as them but in reality he will be taxed more. People may not understand it but I think most will feel like that he is at a minimum being taxed the same as them The only reason why taxes are so unfair is because theyre so complex and inefficient. Taxes need to be simple and transparent before they will be considered fair. __________________ www.NRABannedGunsRaffle.org Last edited by mlmpetert; 02-03-2012 at 07:12 PM.